Black & Decker 2011 Annual Report Download - page 85

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73
2011
2010
2009
Earnings per share of common stock: ................................
................
Basic earnings per share of common stock:
.............................
Continuing operations ................................
.....................
$ 4.16
$ 1.37
$ 2.82
Discontinued operations ................................
.................
$ (0.10)
$ (0.03)
$ (0.01)
Total basic earnings per share of common stock
............
$ 4.06
$ 1.34
$ 2.81
Diluted earnings per share of common stock:
Continuing operations ................................
.....................
$ 4.06
$ 1.35
$ 2.81
Discontinued operations ................................
.................
$ (0.10)
$ (0.03)
$ (0.01)
Total dilutive earnings per share of common stock
........
$ 3.97
$ 1.32
$ 2.79
The following weighted-average stock options, warrants and Equity Purchase Contracts to purchase the Company’s common stock
were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
2011
2010
2009
Number of stock options
................................................................
.......
2,379
2,760
3,519
Number of stock warrants
................................................................
.....
4,939
4,939
4,939
Number of sh
ares related to May 2010 equity purchase contracts
.......
—
2,210
5,893
Number of shares related to the convertible preferred units
.................
8,458
1,054
—
The Company has warrants outstanding which entitle the holder to purchase up to 4,938,624 shares of its common stock with a strike
price of approximately $86.50. These warrants are anti-dilutive since the strike price is greater than the market price of the Company’s
common stock.
As of December 31, 2011 and January 1, 2011, there were no shares related to the Convertible Preferred Units included in the
calculation of diluted earnings per share because the effect of the conversion option was not dilutive. These Convertible Preferred
Units, as well as the equity purchase contracts and convertible note hedge, are discussed more fully in Note H, Long-Term Debt and
Financing Arrangements.
COMMON STOCK SHARE ACTIVITY — Common stock share activity for 2011, 2010 and 2009 was as follows:
2011
2010
2009
Outstanding, beginning of year ................................
...
166,347,430
80,478,624
78,876,034
Shares issued as part of the merger
.............................
—
78,497,261
—
Shares issued from Equity Units Offering
..................
—
5,180,776
—
Issued from treasury ................................
....................
2,864,564
2,298,603
2,178,203
Returned to treasury ................................
....................
(165,033)
(107,834)
(575,613)
Outstanding, end of year ................................
.............
169,045,961
166,347,430
80,478,624
Shares subject to the forward share purchase
contract ................................................................
...
(5,581,400) — —
Outstanding, less shares subject to the forward
share purchase contract ................................
..........
163,465,561 166,347,430 80,478,624
In 2011 the Company entered into a forward share purchase contract on its common stock. This contract obligates the Company to pay
$350.0 million to the financial institution counterparty not later than August 2013, or earlier at the Company’s option, for the
5,581,400 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase
contract and factored into the calculation of weighted average shares outstanding.
In 2009, in addition to the common stock share activity described in the Stock-Based Compensation Plans and Other Equity
Arrangements sections of this footnote, the Company issued 242,653 shares of common stock from treasury and received cash
proceeds of $9.5 million during the year.